Lantto Air Uses Two Measures of Activity,flights and Passengers,in the Cost

question 263

Multiple Choice

Lantto Air uses two measures of activity,flights and passengers,in the cost formulas in its budgets and performance reports.The cost formula for plane operating costs is $34,810 per month plus $2,850 per flight plus $12 per passenger.The company expected its activity in June to be 70 flights and 292 passengers,but the actual activity was 69 flights and 291 passengers.The actual cost for plane operating costs in June was $236,550.The plane operating costs in the flexible budget for June would be closest to:

• A)$237,814
• B)$234,952
• C)$236,550
• D)$234,417

Understand the principles of contract voidability, including the concepts of undue influence, duress, and misrepresentation.

Identify the circumstances under which a contract can be rescinded or set aside.

Recognize the difference between void and voidable contracts.

Grasp the implications of mutual mistake and its effect on contract validity.